Culp, Inc. is a global textile enterprise involved in the manufacturing, procurement, marketing, and sale of materials for bedding and upholstered furniture. Its products, which include mattress fabrics, sewn covers, and pre-cut fabric kits, are distributed across the United States, North America, Asia, and other international regions. The company's operations are segmented into two core divisions: Mattress Fabrics and Upholstery Fabrics. The Mattress Fabrics division specializes in offering various textiles like woven jacquard, knitted, and converted fabrics, essential for crafting bedding components such as mattresses, box springs, foundations, and top-of-bed items. Concurrently, the Upholstery Fabrics division supplies a wide selection of materials, including jacquard woven fabrics, velvets, micro denier suedes, dobby weaves, knitted fabrics, piece-dyed woven products, and polyurethane fabrics. These are primarily used in the production of residential and commercial upholstered furniture (such as sofas, recliners, chairs, loveseats, sectionals, and sofa-beds), along with office seating and window treatment solutions. This segment also extends installation services to its clients in the hospitality and commercial sectors. Founded in 1972, Culp, Inc. is headquartered in High Point, North Carolina.
Culp Announces First Quarter Fiscal 2027 Results
Culp posted Q1 fiscal 2027 net sales of $54.0 million, up 6.5% year-over-year despite one fewer selling week, and swung to net income of $6.0 million, or $0.47 per diluted share, from a $231 thousand loss a year ago.
Earnings quality carries a caveat: $6.9 million of one-time IEEPA tariff refunds from U.S. Customs and Border Protection sit in GAAP results; excluding them, adjusted gross margin still improved roughly 17% to 15.6% of sales and the adjusted operating loss narrowed to $271 thousand from $1.9 million, with adjusted EBITDA positive at $566 thousand.
The balance sheet improved markedly, with net debt cut over 70% to $3.1 million from $10.9 million at fiscal year-end, and free cash flow of $7.8 million versus negative $874 thousand in the prior-year period.
Bedding sales grew 13.2% to $31.8 million, which management says significantly exceeds industry norms, while upholstery was roughly flat at $22.2 million; guidance remains limited, but management expects break-even operating income for the second quarter.